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The incoming administration of Donald Trump, along with Elon Musk and Vivek Ramaswamy, is preparing an ambitious plan to cut at least $2 trillion from the annual federal budget. However, they face a key limitation: Congress has the “power of the purse,” meaning that only it can decide how government money is used. Given this, Trump’s team could resort to the controversial concept of “budget retention.”
What is budget retention?
Budget holdup refers to the president’s decision not to spend funds that have already been appropriated by Congress. Although this practice was common in the past, it underwent a drastic change after the abuses of Richard Nixon, who tried to frustrate projects approved by Congress. This led to the creation of the Budget Retention Control Act of 1974, which limits the president’s ability to divert funds without authorization from Congress.
Musk and Ramaswamy’s strategy
Musk and Ramaswamy have pointed out that the current system unconstitutionally limits presidential power. In a recent op-ed, both noted that they plan to challenge these restrictions at the Supreme Court, arguing that the court’s current makeup could be on their side.
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According to Musk, “with budget withholding, we can simply cut off the flow of money,” referring to a strategy to stop funds destined for specific programs.
Budget retention and tensions with Congress
Implementing budget sequestration on a large scale could lead to a significant confrontation with Congress, especially with Democrats, who have already warned against “excess executive power.” Trump already tried to use this tool during his first term by delaying funds to Ukraine, which contributed to his first impeachment.
Trump’s team is now aiming for even more drastic measures, such as eliminating entire departments and reducing agencies to their bare minimum. These actions could meet strong legislative resistance, but they also reflect Musk and Ramaswamy’s bold approach to delivering on their austerity promises.
What could change?
If the Supreme Court sides with Trump, budget sequestration could become a powerful tool to redesign federal spending. This would include eliminating bureaucracy, reducing agencies and cutting popular programs, such as veterans benefits, which currently make up a significant portion of the budget.
Conclusion
The use of budget sequestration by Trump, Musk and Ramaswamy could redefine the balance of power between Congress and the Executive.
Although his proposals have the potential to significantly reduce federal spending, they also present political and legal challenges that could spark intense disputes in Washington. Will this strategy be a viable solution or will it unleash a new constitutional confrontation?
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